Zhuzhou Smelter Group (600961.SS: Quote), China's largest zinc producer, posted a 76 percent drop in net profit in 2008, as the financial crisis curbed the demand for metals.
Its net profit dropped to 19.2 million yuan ($2.8 million) in 2008, sharply down from 79.5 million yuan ($11.6 million) a year earlier, the company said in a filing to the Shanghai Stock Exchange late on Monday.
Revenue fell 39 percent to 8.4 billion yuan from 13.7 billion yuan a year earlier, Zhuzhou Smelter said.
Since the third quarter, with the global economy slowing down, domestic and overseas demand for zinc have decreased, the company said.
On the other hand, the costs of electricity and raw materials have been soaring, which greatly affected the company's profitability.
Business was also hurt by a production halt during icy weather in early 2008 and a power tariff increase in the second half of 2008, the company said. (1$=6.84 yuan) (Reporting by Michael Wei, editing by Will Waterman)
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